Nifty ends below 7800, Sensex tanks 256 points on global jitter

The Samvat 2072 cheer was short-lived on Dalal street, as global sentiments weigh in on Dalal Street. Global jitters on Fed rate hikes and falling crude price bruised investor sentiment a day after Diwali in India. The Nifty failed to hold on to 7800-mark as all the gains posted during Muhurat trading was wiped out on Friday. The market lost more than 2 percent in trade this week.

The Sensex slipped 256.42 points or 0.9 percent at 25610.53 and the Nifty fell 66.20 points or 0.8 percent at 7762.25. About 933 shares have advanced, 1656 shares declined, and 156 shares are unchanged.

Asian stocks were down amid sharp falls in the price of commodities and growing expectations that the Federal Reserve is on track for a rate hike in December for the first time in nearly a decade  Crude prices hit two-and-a-half-month lows after the US government reported a stockpile build four times above market expectations.

However, this has not perturbed analysts who are betting big on India. Xavier Denis, Global strategist, Societe Generale feels that India is a bright spot among emerging markets and overseas investors are showing an appetite to invest in India.

He says, India is one of the few markets that will see growth acceleration in the next year and year after that. However, the only challenge for India is in terms of reforms and whether the government will be able to push through important reforms to propel long-term economic growth,

Metal index was up in a weak market. Coal India, Bharti Airtel, Axis Bank, GAIL and Tata Steel were top gainers in the Sensex. Among the losers were Vedanta, Cipla, Bajaj Auto, ONGC and Hindalco.

Bharti Airtel rose as the company is going to issue its maiden Sterling bond of up to 500 million pounds. This bonds, when issued, will be listed on London Stock Exchange. "The intended bond issue, when issued, will help Bharti drive its strategy of further diversification and further extension of maturities," as per BSE filing.

Meanwhile, Indiabulls Housing Finance slumped 17 percent intraday after it struck a deal with UK's OakNorth Bank for to acquire a 39.76 percent stake for USD 100 million (about Rs 661 crore). It feels the acquisition will help it chart a roadmap to a deposit-taking franchise. However, the deal has not gone well with investors raising concerns on the investment. Analysts say that it was an expensive deal.

3:30 pm Market closing: The Sensex ended down 256.42 points or 0.9 percent at 25610.53, and the Nifty slipped 66.20 points or 0.8 percent at 7762.25. About 933 shares advanced, 1656 shares declined, and 156 shares were unchanged.

Coal India, Bharti, Axis Bank, GAIL and Tata Steel were top gainers while Vedanta, Cipla, Bajaj Auto, ONGC and Hindalco were losers in the Sensex.

3:00 pm Oil stock: Growing global oil stockpiles could offer an "unprecedented buffer" in times of geopolitical shock, the International Energy Agency (IEA) said, as it forecast demand growth would slow next year.

"Stockpiles of oil at a record 3 billion barrels are providing world markets with a degree of comfort. This massive cushion has inflated even as the global oil market adjusts to USD 50/bbl oil." the agency noted in its November report released Friday.

Global growth is forecast to slow in 2016 to 3.6 percent, according to the latest International Monetary Fund forecasts, which has warned that "downside" risks to the world economy have grown in recent months. Although the sharp drop in oil prices is a result of oversupply rather than a lack of demand, fears surrounding the health of the global economy are keeping investors on edge.

2:55 pm MCP: Government may procure only 20-25 lakh bales of cotton in the current marketing year that began last month as domestic prices are higher than the support price in many parts of the country.

The state-run Cotton Corporation of India (CCI) purchased 87 lakh bales (of 170 kg each) in the 2014-15 marketing year, which runs from October to September.

"We have started cotton procurement at a minimum support price (MSP) levels. As compared to last year, we will not purchase more than 20-25 lakh bales this time because cotton seed prices are comparatively good," CCI Chairman and Managing Director B K Mishra told PTI.

The CCI has so far purchased 3,000-4,000 bales in Telangana and Andhra Pradesh. "We will procure in Maharashtra, but in other states, we may buy negligible quantity," he said.

2:45 pm Interview: Capacity expansion and low raw material cost aided second quarter earnings, Dinesh Nolkha, Managing Director at Nitin Spinners told CNBC-TV18.

The company's total income grew 40 percent to Rs 190.10 crore and earnings before interest, tax, depreciation and amortization (EBITDA) rose 66.5 percent to Rs 34.8 crore in the second quarter.

The added capacity helped in increasing production by 55 to 60 percent and volume growth of nearly 50 percent in the Q2, Nolkha said.

Nolkha is hopeful of maintaining growth and margin in coming quarters on back of increased capacity.

2:30 pm Result: Wockhardt reported a multi-fold jump in consolidated net profit at Rs 107.59 crore for the second quarter ended September 30, mainly on account of robust sales and lower tax expense.

The company had posted a net profit of Rs 3.63 crore during the corresponding period of the previous fiscal, Wockhardt said in a filing to BSE.

Consolidated total income from operations also rose to Rs 1,231.65 crore for the quarter under review as against Rs 1,029.16 crore for the same period a year ago.

While the UK business of the company recorded a growth of 88 percent during the quarter, India business grew 22 percent.

Mayhem continues on Dalal Street as the Sensex is down 219.74 points or 0.8 percent at 25647.21. The Nifty slips 59.95 points or 0.8 percent at 7768.50. About 791 shares have advanced, 1627 shares declined, and 138 shares are unchanged.

Coal India, Axis Bank, Tata Steel, Reliance and Bharti Airtel are top gainers while Vedanta, Hindalco, Cipla, ONGC and TCS are losers.

Meanwhile, Indian companies have garnered close to Rs 3 lakh crore from the markets in the first half of the ongoing fiscal with debt market emerging as the most preferred route for their corporate needs.

An analysis of funds raised through various channels showed that companies have mopped up fresh capital totalling Rs 2,90,470 crore through equity and debt in the first half of the current fiscal.

A large chunk of this, more than Rs 2.44 lakh crore came from the debt market, while Rs 46,197 crore were mobilised through equity.

1:45 pm New listing: Fragrance maker SH Kelkar & Company will list its equity shares on exchanges Monday (November 16). The issue price is fixed at Rs 180 per share.

The Rs 508-crore initial public issue was oversubscribed 27.08 times. It was opened for subscription from October 28-30 and price band was at Rs 173-180 per share for IPO.

Out of total issue, the company raised Rs 210 crore by issuing fresh shares while the US-based private equity firm Blackstone garnered Rs 290 crore by offloading its 10 percent stake in the company. In 2010, Blackstone had bought a 33 percent stake in the company for Rs 243 crore.

The company intends to use issue proceeds for repayment of loans and investment in subsidiary K V Arochem.

1:30 pm Boardroom: CESC reported a 1.56 percent increase in second quarter net profit of Rs 195 crore against Rs 192 crore in the same quarter last year. Total income grew 7.09 percent in Q2 to Rs 1,797 crore.

Speaking to CNCB-TV18, Sanjiv Goenka, Vice-Chairman of the company said that there was a slight uptick in the sale of power in the quarter gone by. Realisation per unit was Rs 6.97, he added.

Goenka is confident of maintaining same level of margins in coming quarters. He expects two to four percent sales growth in the current third quarter and also hope to turn the Spencer brand EBITDA positive.

The market is still down with major indices struggling. The Sensex is down 224.90 points or 0.9 percent at 25642.05 and the Nifty slips 63.90 points or 0.8 percent at 7764.55. About 726 shares have advanced, 1575 shares declined, and 125 shares are unchanged.

Coal India, Axis Bank, Tata Steel, Reliance and Bharti Airtel are top gainers while Vedanta, ONGC, TCS, Cipla and Hindalco are major losers in the Sensex.

India is a bright spot among emerging markets is the word says Xavier Denis, Global strategist, Societe Generale, adding that overseas investors are showing an appetite to invest in India.

He says, India is one of the few markets that will see growth acceleration in the next year and year after that. However, the only challenge for India is in terms of reforms and whether the government will be able to push through important reforms to propel long-term economic growth, says Denis in an interview to CNBC-TV18.

''Overall India has done tremendous improvement in terms of macro management, which is likely to continue,'' he says.

12:55 pm Fund raising: Bharti Airtel said it intends to issue Sterling Bond of up to GBP 500 million (around Rs 5,000 crore), which will be listed on the London Stock Exchange.

Airtel said the amount will be used for refinancing its existing loan portfolio. The country's top telecom operator said the issue and its timing remains subject to necessary authorisations and approvals, global credit environment and market conditions.

Airtel in a regulatory filing said that it "...intends to issue its maiden Sterling Bond of up to GBP 500 million. This bond, when issued will be listed on London Stock Exchange."

12:45 pm Indo-US ties: The US-India Business Council (USIBC) said the liberalisation of India's FDI policy in over a dozen sectors will further improve ease of doing business and boost investments in the country.

Putting more FDI proposals through the automatic route is a clear signal that the government is living up to the mandate of minimum government and maximum governance, USIBC President Mukesh Aghi said in a statement.

Applauding India's latest reforms, USIBC said the move would "enable the ease of doing business in the country" and "will propel more investment and innovation".

12:30 pm Interview: The government relaxed Foreign Direct Investment (FDI) norms in various sectors to boost investments in the country. Romesh Sobti, MD & CEO, IndusInd Bank says that relaxations of norms will help raise market sentiments. Speaking to CNBC-TV18, Sobti says demand in the credit business is picking-up gradually. Retail demand, both in vehicle and non-vehicle segment was good in the July to September quarter, he says adding that demand is visible even in brownfield expansion as well. Sobti says that in the vehicles segment, demand for small and light commercial vehicles (CVs) has lagged in the Q2.

The market remains weak as bears grip Dalal Street. The Sensex is at 25605.54, down 261.41 or 1 percent. The Nifty is at 7749.85, down 78.60 or 0.9 percent.

Coal India, Tata Steel, Axis Bank and GAIL are top gainers in the Sensex while Vedanta, ONGC, TCS, Cipla and L&T are top gainers.

Oil prices remained under pressure after a huge jump in US crude inventories reinforced projections that a supply glut will persist well into next year. "Although global oil demand growth has been exceptionally strong year-to-date, the overall pace of supply side adjustment has been too slow to end a sustained increase in global inventories that we expect to persist through most of 2016," British bank Barclays said.

11:55 am Modi: Wooing British investors, Prime Minister Narendra Modi on Thursday said that "necessary conditions" for take-off of the Indian economy have been created and held out an assurance that it will get "better and better" in the coming days. Modi said India is among the "most open" countries for foreign investments with the latest round of FDI reforms, asserting, at this point of time, it is "wiser to be in India."

Stating that he is personally eager to work with the British Government and companies, Modi vowed "my personal care in making your dreams a reality." Modi was speaking before a business audience at the historic Guildhall in the heart of the city of London's financial district on the first day of this three-day visit to the UK--the first by an Indian Premier in 10 years.

11:45 am New listing: Fragrance maker SH Kelkar & Company will list its equity shares on exchanges Monday (November 16). The issue price is fixed at Rs 180 per share.
 
The Rs 508-crore initial public issue was oversubscribed 27.08 times. It was opened for subscription from October 28-30 and price band was at Rs 173-180 per share for IPO.

Out of total issue, the company raised Rs 210 crore by issuing fresh shares while the US-based private equity firm Blackstone garnered Rs 290 crore by offloading its 10 percent stake in the company. In 2010, Blackstone had bought a 33 percent stake in the company for Rs 243 crore.

The company intends to use issue proceeds for repayment of loans and investment in subsidiary K V Arochem.

11:30 am Market outlook: Michael Every of Rabobank expects pressure on commodities and equities to continue in the near term. Every, while he is positive on Indian market, says that the valuations are not cheap, but the fundamental story is much better than other emerging markets (EMs). In an interview to CNBC-TV18, he says that while the overall growth in China has been low, there are segments that are growing at a decent rate. Most of the news on China's slowing economy is just noise, he adds. On the expectation of a rate hike by the US Federal Reserve, Every says, there is 50 percent change of interest rates going up in December this year depending on market volatility.

The market continues to skid further as selling pressure mounts on. The Sensex is down 261.29 points or 1 percent at 25605.66, and the Nifty is down 80 points or 1 percent at 7748.45. About 656 shares have advanced, 1418 shares declined, and 128 shares are unchanged.

Coal India, GAIL, Axis Bank, Tata Steel and Bajaj Auto are top gainers in the Sensex. TCS, ONGC, Vedanta, Cipla and Lupin are among major losers.

Gold fell for a twelfth session out of thirteen on Friday, trading close to a near-six-year low on rising bets that the Federal Reserve would hike US rates next month and as investors pull out of bullion-backed funds.

Sustained outflows could add to the pressure on the metal prices, already hit by the strength in the dollar.

Bullion has been under pressure recently as expectations for a December rate hike in the United States strengthened after a robust nonfarm payrolls report earlier this month.

10:55 am Macro data: Indian economy is still not out of the woods as industrial production slackened to a four-month low of 3.6 percent while retail inflation inched up to 5 percent. According to data released today by the Central Statistics Office (CSO), industrial production grew at 3.6 percent in September compared to 2.6 percent in the same month last year, mainly because of subdued performance of the manufacturing sector. The retail inflation rose to four-month high of 5 percent in October compared with 4.41 percent in September this year and 4.62 percent in October 2014.

10:45 am Buzzing: Shares of Indiabulls Housing Finance slumped 14 percent intraday on Friday after it struck a deal with UK's OakNorth Bank for to acquire a 39.76 percent stake for USD 100 million (about Rs 661 crore). It feels the acquisition will help it chart a roadmap to a deposit-taking franchise
However, the move has not gone well with investors raising concerns on the investment. Analysts say that it was an expensive deal.

Though Nomura has a buy on the stock with a target price of Rs 800 per share, it says minority perspective would have preferred the company wait for this acquisition before the capital raise. Nomura says it is difficult to factor in any positive outcome on deposit taking given the uncertainty involved. It adds further that the acquisition should be treated as an investment with limited near-term return.

10:30 am Result poll: Coal India 's July-September quarter profit is seen rising 22.7 percent year-on-year to Rs 2,690 crore on strong operational income and lower tax cost, according to average of estimates of analysts polled by CNBC-TV18. Revenue is likely to increase 9.9 percent to Rs 17,230 crore during the quarter compared to Rs 15,678 crore in year-ago period, led by strong volume growth. Offtake of coal increased 10.3 percent year-on-year to 121.9 million tonne and production was up 5.7 percent to 108.2 million in quarter ended September 2015.

The market remained under pressure with the Sensex falling 216.08 points to 25650.87, tracking weak global cues. The Nifty declined 66.35 points or 0.85 percent to 7762.10.

The broader markets also lost ground. The BSE Midcap shed 1 percent and Smallcap declined 0.5 percent. The market breadth too was negative as about 1138 shares slipped against 547 advancing shares on the BSE.

TCS, Vedanta and Cipla topped selling list on Sensex, down more than 2 percent followed by Infosys, Reliance Industries, HDFC, ITC, ICICI Bank, L&T, HDFC Bank, Tata Motors, SBI, HUL, ONGC and Maruti with 0.5-1.5 percent loss.

Coal India gained 1.6 percent ahead of September quarter earnings today. A CNBC-TV18 poll sees 22.7 percent year-on-year increase in net profit on strong operational performance. Key factor to watch out for would be e-auction of coal.

Asian markets like Shanghai, Hang Seng and Kospi were down 1-2 percent on negative lead from Wall Street. Nikkei, Straits Times and Taiwan Weighted declined 0.6-0.8 percent.

9:55 am Shopping bag full: Indiabulls Housing Finance said it will acquire a 39.76 percent stake in the UK's OakNorth Bank for USD 100 million (about Rs 661 crore).

The company said the acquisition will help it chart a roadmap to a deposit-taking franchise. "Pursuant to all applicable regulatory approvals from relevant regulators in lndia and the UK...Indiabulls Housing Finance Ltd' is investing USD 100 million for 39.76 percent stake in OakNorth Bank, a licensed UK commercial Bank the company will be the largest shareholder in the bank," Indiabulls Housing Finance said in a regulatory filing.

Indiabulls Housing Finance said the investment has been identified and approved by the Strategic Investment Committee for Liability Franchise Development headed by K C Chakrabarty, an independent director on the Board and ex-Deputy Governor of the Reserve Bank of India, specially constituted by the Board for the purpose of creating a practical roadmap to a deposit-taking franchise.

9:45 am Big bet on India: British telecom group Vodafone committed investments totalling Rs 13,000 crore in India for capacity augmentation and new business initiatives. The investment was committed to by Vittorio Colao, CEO of Vodafone Group Plc, in his meeting with Prime Minister Narendra Modi here.

"Since starting operations in India in 2007, Vodafone has already invested over Rs 111,000 crore and over Rs 100,000 cr contributed to the exchequer and is today the largest FDI investor in the country," the company said in a statement.

Colao said, "At Vodafone, we are enthused with the PM's vision for 'Digital India' and 'Make in India'. Vodafone India serves over 188 million citizens, of which almost 100 million are from rural areas.

9:30 am SpiceJet: Staying profitable for the third consecutive quarter, low-cost carrier SpiceJet reported a net profit of Rs 23.77 crore in the three months ended September driven by a steep fall in fuel costs and other expenses. The no-frills carrier, which saw the return of its original promoter Ajay Singh at the helm earlier this year, had a net loss of Rs 310.45 crore in 2014 September quarter. The airline has flown into the black despite its total income from operations declining over 28 percent to Rs 1,040.13 crore in July-September of the current fiscal, according to a release.

Day after Diwali, the market has opened on a tepid note. The Sensex has opened at 25647.03, down 219.92 points or 0.8 percent and the Nifty is at 7762.40, down 66 points or 0.8 percent.

About 242 shares have advanced, 610 shares declined, and 43 shares are unchanged.

Bharti Airtel, ONGC, ITC, Lupin and Vedanta are top laggards in the Sensex. Sun Pharma, Coal India, Axis Bank, Tata Motors and L&T are top gainers in the Sensex.

The Indian rupee opened higher by 13 paise at 66.18 per dollar against Tuesday's close of 66.31.

Pramit Brahmbhatt of Veracity said, "Local equity market is likely to trade sideways today and will take cues from global markets for further directions. Strength in dollar will keep rupee under pressure. Today being the last trading day of the week, investors are expected to trade cautiously and square off their position ahead of the weekend."

Asian stocks tracked Wall Street lower early Friday, with risk-off sentiment in full swing amid sharp falls in the price of commodities.

Crude prices hit two-and-a-half-month lows on Thursday after the US government reported a stockpile build four times above market expectations. West Texas Intermediate crude was last seen 0.3 percent lower at $41.62 a barrel in early Asian trade.

Meanwhile, gold tumbled to its lowest level since 2010, depressed by expectations that the Federal Reserve is on track for a rate liftoff in December for the first time in nearly a decade. Copper also fell to its weakest level in more than six years, hurt by a strong dollar and persistent concerns over China's economy.